Tweed And Aphri Business Analysis

On March 11, 2016, 7 Acres joined industry leaders Tweed Inc. and Aphria in the market who have had their licenses since November 18th, 2013 and March 24th, 2014 respectively (Canada, G. O., 2017). Tweed and Aphria have been in the market for two years or longer, this has given them a first mover advantage. The advantages to this are customer loyalty, recognized brand name, and becoming an established company. Tweed and Aphria have had a two year head start on 7 Acres, this has allowed them to develop a customer base, the brand recognition and known quality to maintain and attract customers. This has also allowed Tweed and Aphria to become more established, and build a stronger financial base and be further ahead in expansion and development.

One method is to grow cannabis from cloning the plants with clippings. This ensures consistent high quality cannabis that is genetically identical to the strain of their choice. Cultivating cannabis by clippings also speeds up the growing cycle as there is no need to wait for the germinating process (Marijuana Cloning). 7 Acres grows all of its cannabis by seed and has formed a strategic alliance with Dinafem, a global leader in the standardization of cannabis genetics for seeds. Forming this strategic alliance gives 7 Acres access to one of the best seed companies in the world as well as consulting services to help in the growing process (Supreme est., 2016). Supreme will benefit from Dinafem’s expertise as they have decades of experience in research and development of different strains. By partnering with Dinafem it gives Supreme access to Dinafem’s seed bank, this allows Supreme to select from a variety of seeds that have been grown in the past and have been continually improved. To date, no dominant method has emerged in the growing process with no majors differences in the value created by cannabis seeds or

Either option has their advantages and disadvantages in terms of consistent growing and costs. Tweed, the top competitor, grows crops in warehouses, where as Aphria grows in greenhouses previously used for other crops. Growing indoors allows more control over the environment like controlling climate, and ensures consistent high quality production year round. However, the production costs may be greater because the infrastructure and operating costs like electricity are more expensive than they would be in greenhouses. Growing in greenhouses also has its advantages and is a viable option. Greenhouses rely mostly on the natural sunlight to grow its product, avoiding the high costs of electricity. They are also less expensive than buildings. Disadvantages of greenhouses especially in Canada are the climate and that the sun is not out 24/7. This means that there may be inconsistencies in the product or the higher potential for crop failure, the greenhouses must also be equipped with some sort of climate control system and growing